2006-09-04 05:17:36 · 25 answers · asked by laily 1 in Social Science ➔ Economics
Go to school.
2006-09-04 05:22:54 · answer #1 · answered by Trendsetter 2 · 0⤊ 6⤋
Relationship Between Supply And Demand
2016-10-24 12:20:24 · answer #2 · answered by deprizio 4 · 0⤊ 0⤋
In theory, Supply and Demand in a given country determine how much a society should produce at what price; equilibirium - demand and supply intersection. They are inversely related. The variables are always price and quantity. If price increases for a given supply output (say radios), there will be less demand as people are faced with higher prices; new equilibirium. However, if producers produce more, because lets say they offered tax incentives, then they will increase their supply and prices drop again...and so demand increases - reaching the original equilibirium. Now if supply increases (higher quantity), say because producers have better technology which save cost, prices drop, and demand increases (as people can buy more at a lower price); new equilibirium. Ok? Hope this helps. Try to graph it, it helps a lot in understanding further.
2006-09-04 06:17:31 · answer #3 · answered by coolblue 2 · 0⤊ 0⤋
This Site Might Help You.
RE:
What is the relation between Demand and Supply.?
2015-08-06 02:04:05 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Demand and supply will intractect mutually. When there is Demand for a product is more then the supply of the product will be less. If supply of the product is more than the demand is less.
Ex: Gold and Salt
Here Price also plays a major role.
2006-09-04 10:28:09 · answer #5 · answered by vinni 1 · 1⤊ 0⤋
Supply will be determined by cost of production and the market price. If the Demand is more there will be more supply and it will reduce with the fall in price. Demand will increase price and accelarate supply. There will be a shift in supply as well as demand in relation to the price level.
2006-09-05 04:23:55 · answer #6 · answered by subbu 6 · 0⤊ 0⤋
It's simple logic!!
U do make three rotis with some amount of flour....so the supply=3 roties.
I eat all the 3 roties and badly need two more...
so Demand= +2 roties
as u see...Demand is more....it triggers..??
yes it triggers more supply!!!
Now u gotta tell me the relation between Demand and Price!!!
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2006-09-04 05:29:59 · answer #7 · answered by Prabu . 2 · 0⤊ 0⤋
The relationship between demand and supply underlie the forces behind the allocation of resources
2006-09-04 05:24:14 · answer #8 · answered by sixer 2 · 1⤊ 0⤋
Demand is what consumers are willing and able to purchase at any given price; Supply is what producer are willing to produce. When demand is high it causes an upward pressure on price; therefore, producer are willing to produce more product. Demand drives supply, and price drives demand.
2006-09-04 15:05:28 · answer #9 · answered by B. T 2 · 0⤊ 0⤋
Demand-need of any thing
Supply-dispatch of the needed thing.
Supply thrives on demand.
2006-09-05 22:07:49 · answer #10 · answered by Anonymous · 0⤊ 0⤋
both r interdependent on each other.
if demand is there then there is need for supply and if there is supply then there has to be demand.
without supply there can be demand but without demand there cannot be supply because it will be surely a waste of funds.
2006-09-04 05:58:22 · answer #11 · answered by OXYMORON.RAJ 2 · 0⤊ 0⤋